#NDTVProfitAtWEF | How #ApolloTyres expanded ROCE by 600 bps using #ArtificialIntelligence? Is there more to come?
Vice Chairman & MD Neeraj Kanwar in conversation with Niraj Shah, on the sidelines of #Davos2024. #NDTVProfitLive
Vice Chairman & MD Neeraj Kanwar in conversation with Niraj Shah, on the sidelines of #Davos2024. #NDTVProfitLive
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00:00 All states are well represented and there is a lot of inflow of funds coming into India. I can see that
00:05 there's a lot of excitement about India because
00:08 Other world economies are going through recessions, inflationary issues, political geopolitical issues
00:14 Whereas I think the government under the Prime Minister is being very proactive and have taken very good
00:22 positive proactive steps for
00:24 the Indian consumers
00:26 for the India infrastructure
00:28 Which is now playing out and we are seeing that on the road also
00:32 Okay
00:32 So not just as the head honcho of Apollo tires
00:35 But as somebody who's a part of various bodies in India and Davos what have been conversations like are people
00:41 Keen to make investments into India or other economies at a point of time when the world growth seems to be tapering off
00:47 Well, I think it's a bit cautious
00:49 people are
00:51 Waiting and watching
00:53 one of the big themes here that's going on around here is AI and you would have also seen that and
00:58 a lot of artificial intelligence machine learning
01:01 What is generative artificial intelligence how that is going to help your businesses how that is also going to help
01:07 Governments and economies to scale up a lot of data centers coming around. So that's I guess the new buzz that's going around
01:15 Well, of course for a tire company not necessarily everything around it but adapting to that will also be important
01:24 But also just tell us about how do you envisage?
01:27 2024 to be well, you know in particularly in AI
01:30 We've been doing this for the past three years now
01:33 So we have two tech innovation hubs one in Hyderabad and one in London where there are data scientists sitting
01:41 We are now on on the cloud. So all our data is real-time. We have seven plants across India and Europe
01:48 So all data is coming in from the cloud data scientists are analyzing it through
01:53 artificial intelligence
01:56 Understanding equipment. So for example in our plant in Hungary, we've been able to increase our productivity
02:01 When nearly 12% just through data mining understanding data and by increasing productivity
02:07 So very less inflow of capex, which is what we are doing and for the next two years
02:12 We're going capex light and we are putting a lot of emphasis on digitalization and trying to see how we can improve our
02:19 balance sheet ratios
02:22 Our Rosie's now gone up to 15 to 16 percent from a sub 10
02:26 That's all thanks to all the digital activities that we're doing and more and more we'll keep on investing in this
02:33 So right now it's only gone into manufacturing. The next step is to take it into supply chain take it into
02:39 sales and marketing and
02:42 Understand consumer behavior through artificial intelligence and supply chain is a big issue today as we know
02:48 It is it is very challenging and supply chain is if if you can get the supply chain
02:53 Correct through AI and understanding customer accuracy forecasting then you're also
02:59 Emitting less carbon emissions if you understand what I'm saying
03:03 So less truck movement is happening and the right truck movement is happening to the customers
03:08 So there's a lot happening internally in Apollo
03:11 On artificial intelligence. So this is not news to me
03:14 I mean, it's just an added on that what we are doing is the right way and the right steps that we are taking